21297407 advertising imc

8/6/2019 21297407 Advertising IMC

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Advertising

&IMC


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Advertising Overview

The business of Advertising is to attract attention

Some interesting quotations ascribed to advertising

You cant save souls in an empty church.

Doing business without advertising is like winking at a girl in

the dark, you know what you are doing, but nobody elsedoes Stewart H Britt.

Chris Jacques, Chairman, BBDO Asia Pacific thinks that advertising is the business of creative thinking forcommercial advantage.


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An average person is introduced to more than 600

advertisements per day. People are bombarded withmessages through an expanding variety of media like

Television

Radio

Newspapers and magazines

Hoardings

Direct mail campaigns

the new age media like the ads on the Internet

Telemarketing programmes &

Messages heard while a consumer is on hold on the

telephone.


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Integrated

Marketing Communications

A concept of marketing communications planning thatrecognizes the added value of a comprehensive plan that

evaluates the strategic roles of a variety of communicationdisciplines and combines these disciplines to provide

clarity,consistency and maximum communications impact.


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Integrated Marketing Communications

A marketing communications planning concept that

recognizes the value of a comprehensive plan.

A plan that evaluates the strategic roles of severalcommunications disciplines:

Media advertising Direct marketing

Interactive/internet marketing

Sales promotion

Publicity/Public relations

Combines the disciplines to provide:

Clarity

Consistency

Maximum communications impact


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Marketing & Promotional Mixes

Marketing Mix:

Product or Service Pricing Channels of Distribution Promotion

Promotional Mix: Advertising Direct Marketing Interactive/internet marketing Sales Promotion

Publicity/Public Relations Personal Selling


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Corporate Level Message Sources

Administration Manufacturing/ Marketing Finance HumanLegal

Operations Resources

Cross-Functional Brand Equity (IM) Team

Marketing Level Message Sources

Product Price Marketing DistributionMix Mix Communication Mix

Cross-Functional IMC Team

Marketing Communication Level Message Sources

Personal Adver- Sales Direct Public Pack- Events

Sales tising Promotion Marketing Relations aging

Interactivity

Other StakeholdersEmployeesInvestorsFinancial CommunityGovernmentRegulators

Customers

DistributorsSuppliersCompetition

ConsumersLocal CommunityMediaInterest Groups

Communication-Based Marketing Model


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Communication Levels

Corporate Level Messages sent by a companys overall business practices and philosophies such as mission, labor practices, philanthropies, culture and other processes

Marketing Level Messages sent by or inferred from by various aspects of

marketing mix such as product performance, design,

appearance, pricing and distribution

Marketing Communication Level Strategic and executional consistency among all forms of

marketing communication


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Reasons For Growing Importance of IMC

Shift from media advertising to other forms of marketing

communication

Movement away from advertising focused- approaches that

emphasize mass media

Shift in power from manufacturers to retailers

Rapid growth of database marketing

Demands for greater ad agency accountability

Changes in agency compensation

Rapid growth of the Internet

Increasing importance of branding


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Coca-Cola is the worlds most valuable brand


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IMC Communication Tools

IMC Communication Tools

AdvertisingDirect

Marketing

Interactive/Internet Marketing

SalesPromotion

Publicity/PublicRelations

PersonalSelling


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Any paid form of nonpersonal communicationabout an organization, product, service, ideaor cause by an identified sponsor.

Any paid form of nonpersonal communication

about an organization, product, service, ideaor cause by an identified sponsor.

Advertising

Disadvantages of advertising

High costs of producingand running ads

Credibility problems andconsumer skepticism

Clutter

Difficulty in determiningeffectiveness

Advantages of advertising

Advertiser controls themessage

Cost effective way tocommunicate withlarge audiences

Effective way to createbrand images andsymbolic appeals

Often can be effectiveway to strikeresponsive chord withconsumers


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A l f b i t b i


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An example of a business-to-businessad


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A system of marketing by which organizations

communicate directly with target customers togenerate a response and/or a transaction.

A system of marketing by which organizations

communicate directly with target customers togenerate a response and/or a transaction.

Direct Marketing

Disadvantages

Lack of customer receptivityand very low response rates

Clutter (too many messages)

Image problems particularlywith telemarketing

Advantages

Changes in society have madeconsumers more receptive todirect-marketing

Allows marketers to be veryselective and target specific

segments of customers

Messages can be customized forspecific customers.

Effectiveness easier to measure


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Direct Marketing

Direct marketing methods

Direct mail

Catalogs Telemarketing

Direct response ads

Direct selling


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A form of marketing communication through interactive mediawhich allow for a two-way flow of information whereby users can

participate in and modify the content of the information theyreceive in real time.

A form of marketing communication through interactive media

which allow for a two-way flow of information whereby users canparticipate in and modify the content of the information theyreceive in real time.


Disadvantages

Internet is not yet amass medium asmany consumerslack access

Attention to Internet

ads is very low Great deal of clutter on

the Internet

Audience measurementis a problem on theInternet

Advantages

Can be used for a variety of IMCfunctions

Messages can be tailored to

specific interests and needs of

customers Interactive nature of the

Internet leads to higher levelof involvement

Can provide large amounts ofinformation to customers.


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Use of the Internet as an IMC Tool

As an advertising medium to inform, educate and persuade customers

As a direct sales tool

To obtain customer database information To communicate and interact with buyers

To provide customer service and support

To build and maintain customer relationships

As a tool for implementing sales promotion As a tool for implementing publicity/public

relations programs

Internet is an important IMC tool for


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Internet is an important IMC tool for

American Airlines

Source: Courtesy American Airlines.


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Marketing activities that provide extra value or incentives to

the sales force, distributors, or ultimate consumers and canstimulate immediate sales.

Marketing activities that provide extra value or incentives to

the sales force, distributors, or ultimate consumers and canstimulate immediate sales.

Sales Promotion

Trade-oriented

Targeted towardmarketing intermediaries suchas retailers, wholesalers, or

distributors

Promotionallowances

Merchandiseallowances

Price deals

Sales contests Trade shows

Consumer-oriented

Targeted to theultimate users of aproduct or service

Coupons

Sampling

Premiums Rebates

Contests

Sweepstakes

POP materials


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Sales Promotion Uses

Introduce new products Get existing customers to buy more

Attract new customers

Combat competition

Maintain sales in off season

Increase retail inventories

Tie in advertising & personal selling

Enhance personal selling efforts


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Publicity

Advantages

Credibility

Low cost (although not totally free)

Often results in word-of-mouth

Disadvantages Not always under control of organization

Can be negative

Nonpersonal communication regarding an

organization, product, service, or idea not directlypaid for or run under identified sponsorship.

Nonpersonal communication regarding an

organization, product, service, or idea not directlypaid for or run under identified sponsorship.


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Publicity Vehicles

News Releases: Single-page news stories sent to media who might print

or broadcast the content.

Feature Articles: Larger manuscripts composed and edited for a

particular medium.

Captioned Photos: Photographs with content identified and explained

below the picture.

Press Conferences: Meetings and presentations to invited reporters andeditors.

Special Events: Sponsorship of events, teams, or programs of public

value.


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Advertising Versus Publicity

FACTOR ADVERTISING PUBLICITY

Control Great LittleCredibility Lower HigherReach Achievable UndeterminedFrequency Schedulable UndeterminedCost Specific Unspecified/lowFlexibility High LowTiming Specifiable Tentative


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Public Relations

Tools used by Public Relations

Publicity

Special publications

Community activity participation Fund-raising

Special event sponsorship

Public affairs activities

The management function which evaluates public

attitudes, identifies the policies and procedures of anindividual or organization with the public interest, andexecutes a program of action to earn public understandingand acceptance.

The management function which evaluates public

attitudes, identifies the policies and procedures of anindividual or organization with the public interest, andexecutes a program of action to earn public understandingand acceptance.


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Direct person-to-person communication whereby a

seller attempts to assist and/or persuade perspectivebuyers to purchase a product or service.

Direct person-to-person communication whereby a

seller attempts to assist and/or persuade perspectivebuyers to purchase a product or service.

Personal Selling

Disadvantages

High costs per contact

Expensive way toreach largeaudiences

Difficult to haveconsistent anduniform messagedelivered to all

customers

Advantages

Direct contact betweenbuyer and sellerallows for moreflexibility

Can tailor sales

message to specificneeds of customers

Allows for more directand immediatefeedback

Sales efforts can be


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Coordinating the promotional mix elements to developa controlled, integrated program of effective marketingcommunications.

Coordinating the promotional mix elements to developa controlled, integrated program of effective marketingcommunications.

Promotional Management

Considerations for developing the promotionalprogram include:

Type of product

Buyers decision process Stage of product life cycle

Channels of distribution

Integrated Marketing Communications


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Promotional Program Situation Analysis

Analysis of the Communications Process

Budget Determination

Develop Integrated Marketing Communications Programs

Review of Marketing Plan

Advertising

SalesPromotion

PR/Publicity

PersonalSelling

DirectMarketing

Advertising

Objectives

SalesPromotionObjectives

PR/Publicity

Objectives

PersonalSelling

Objectives

DirectMarketingObjective

s

MessageStrategy

SalesPromotionStrategy

PR/PublicityStrategy

PersonalSelling

Strategy

DirectMarketingStrategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

Internet/Interactive

Internet/Interactiv

eObjective

sInternet/Interactiv

eStrategy

Integrated Marketing CommunicationsPlanning Model


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The Marketing Plan

A document that describes the overall marketing

strategy and programs developed for a company,product or brand. The plan includes:

A detailed situation analysis

Specific marketing objectives

A marketing strategy and program that includes selectionof a target market and plans for marketing mix

elementsA program for implementing the strategy

A process for monitoring and evaluating performance

i i l i


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Situation Analysis

Internal Factors

Assessment of the firms promotional organizationand capabilities

Review of the firms previous promotional programs

Assessment of firm or brand image and implicationsfor promotion

Assessment of relative strengths and weaknesses ofproduct/service

External Factors

Customer analysis

Competitive analysis Environmental analysis


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Situation Analysis External Factors

Environmental analysis

Technological

Political/Legal

Demographic

Socio/Cultural

Economic

Competitive Analysis

Direct and indirect competitors

Position relative to competitors

Size of competitors advertising/ promotionalbudgets

IMC strategies being used by competitors


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Situation Analysis External Factors

Customer Analysis

Who buys our product or service?

Who initiates and makes the decision to purchase and who influences the process?

How is the purchase decision made?

What attributes or criteria are important to customers?

What are customers perceptions of and attitudes toward our company, product/service or brands?

What factors influence the decision making process?

Contact points where customers can be reached?

A l i f C i i P


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Analysis of Communications Process

Analyze response process of customers inthe target audience.

Analyze best combination of source, messageand channel factors for communicating with

target audience.

Establish communication goals andobjectives.

P t ti l C i ti Obj ti


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Potential Communications Objectives

Sales Customer loyalty

Company image

Brand image

Store patronage Service contract

An inquiry

A visit by a prospect

Product trial

Recommendation

Adoption of the product

The objectives of this ad include image


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The objectives of this ad include imagebuilding and encouraging inquiries

Contact Points Where Customers


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Contact Points Where CustomersCan Be Effectively Reached

Mass media

Broadcast -radio/TV

Newspapers

Magazines

Direct Marketing

Internet/interactive

Brochures, salesLiterature

Publicity/PR

Events/sponsorships

Local

Regional

National/international

Sales Promotions

In-store/POP

Product placements in movies

and television shows

Promotional products

Develop Integrated Marketing


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Develop Integrated MarketingCommunications Program

Advertising

Determine objectives and budget

Message development Called Creative Strategy Determine basic appeal Determine main message

Media strategy Communication channels Type of media . . .

Newspapers/Magazines Radio/Television Outdoor/Specialty

Select specific media

Specific papers, magazines, TV programs,radio stations billboards or other media

Integrate and Implement Marketing


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Integrate and Implement MarketingCommunications Strategies

Integrate promotional mix strategies. Create and produce ads.

Purchase media time and space

Design and implement direct marketing

programs Design and implement sales promotion

program

Design and implement public relations/publicity

programs

Design and implement interactive/ internetmarketing programs


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21297407 advertising imc

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